Genius Sports’ shares dip after public offering announcement

Genius Sports has announced the pricing of an underwritten public offering of 17,647,059 ordinary shares, valued at $8.50 per share, which the supplier said would raise around $144m.

The offering is set to close today, January 16, with the net proceeds including deductions related to “underwriting commissions and estimated offering expenses.”

Explaining the reason behind the public offering, Genius Sports said the net proceeds will be used for “general corporate purposes,” including M&A or investment in complementary businesses, technologies, or other assets.

However, the firm did state it “currently has no agreements or understandings with respect to any such acquisitions or investments” in place.

Investment firms Caledonia and Wellington Management have both participated in the offering, as well as existing shareholders and unnamed new investors.

BTIG acted as the lead bookrunning manager for the offering, while Goldman Sachs and Deutsche Bank Securities were bookrunning managers.

Additionally, Oppenheimer & Co, Citizens JMP, The Benchmark Company, and Craig-Hallum served as co-managers.

Genius Sports has also reaffirmed its previously disclosed full-year 2024 guidance of group revenue and adjusted EBITDA at $511m and $86m, respectively.

In a statement, the supplier announced its cash, cash equivalents, and restricted cash, as of December 31, 2024, to be around $135m – up from $69m in September 2024 and further year-on-year growth from the $126m recorded12 months ago.

The supplier released its Q3 results last November which showed an 18% year-on-year spike in revenue, standing at $120m and above guidance of $119m.

As a part of those results, Genius Sports said it “expects to generate group revenue of approximately $511m and group adjusted EBITDA of approximately $86m in 2024.”

Despite the guidance reaffirmation, Genius Sports’ shares have dipped following the news of the public offering, dropping from $9.50 to $8.72.